Microeconomics Edition 23 by McConnell
Version 1
1
CORRECT ANSWERS ARE
LOCATED IN THE 2ND HALF OF
THIS DOC.
TRUE/FALSE - Write 'T' if the statement
is true and 'F' if the statement is false.
1) An economic model is an ideal or
utopian type of economy that society
should strive to obtain through economic
policy.
⊚ true
⊚ false
2) Because economic generalizations are
simplifications from reality, they are
impractical and useless.
⊚ true
⊚ false
3) If economic theories are solidly based on
relevant facts, then appropriate
economic policy becomes obvious and
uncontroversial.
⊚ true
⊚ false
4) Normative statements are expressions of
facts.
⊚ true
⊚ false
,5) Positive statements are expressions of
value judgments.
⊚ true
⊚ false
6) "The inflation rate is the highest it has
been in 40 years." This is an example of
a positive statement.
⊚ true
⊚ false
7) "The Federal Reserve raising interest
rates is the best way to bring down
inflation." This is an example of a
positive statement.
⊚ true
⊚ false
8) "Wages in the economy are too low."
This is an example of a normative
statement.
⊚ true
⊚ false
9) Macroeconomics explains the behavior
of individual households and business
firms; microeconomics is concerned
with the behavior of aggregates or the
economy as a whole.
⊚ true
⊚ false
10) Purposeful behavior implies that
everyone will make identical choices.
⊚ true
⊚ false
11) Purposeful behavior implies that
everyone using marginal analysis will
always make correct choices.
⊚ true
⊚ false
,ACCESS Test Bank for Microeconomics 23rd Edition McConnell
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Microeconomics Edition 23 by McConnell
Version 1
2
12) Marginal analysis means that decision
makers compare the extra benefits with
the extra costs of a specific choice.
⊚ true
⊚ false
13) Rational individuals may make different
choices because their preferences and
circumstances differ.
⊚ true
⊚ false
14) Choices entail marginal costs because
resources are scarce.
⊚ true
⊚ false
15) The production possibilities curve shows
various combinations of two products
that an economy can produce when
achieving full employment.
⊚ true
⊚ false
16) The production possibilities curve shows
what combination of two products that
an economy should produce.
⊚ true
, ⊚ false
17) The entrepreneur's sole function is to
combine other resources (land, labor,
and capital) in the production of some
good or service.
⊚ true
⊚ false
18) The artistic creations of professional
singers, writers, and digital artists are
capital.
⊚ true
⊚ false
19) Products and services are scarce because
resources are scarce.
⊚ true
⊚ false
20) Products and services are scarce solely
because resources are finite in amount.
⊚ true
⊚ false
21) An economy cannot produce at a point
outside of its production possibilities
curve because human economic wants
are insatiable.
⊚ true
⊚ false
22) The process by which capital goods are
accumulated is known as investment.
⊚ true
⊚ false
23) A professional musician writing a new
song is engaging in investment.
⊚ true
⊚ false
24) The present choice of position on the
Version 1
1
CORRECT ANSWERS ARE
LOCATED IN THE 2ND HALF OF
THIS DOC.
TRUE/FALSE - Write 'T' if the statement
is true and 'F' if the statement is false.
1) An economic model is an ideal or
utopian type of economy that society
should strive to obtain through economic
policy.
⊚ true
⊚ false
2) Because economic generalizations are
simplifications from reality, they are
impractical and useless.
⊚ true
⊚ false
3) If economic theories are solidly based on
relevant facts, then appropriate
economic policy becomes obvious and
uncontroversial.
⊚ true
⊚ false
4) Normative statements are expressions of
facts.
⊚ true
⊚ false
,5) Positive statements are expressions of
value judgments.
⊚ true
⊚ false
6) "The inflation rate is the highest it has
been in 40 years." This is an example of
a positive statement.
⊚ true
⊚ false
7) "The Federal Reserve raising interest
rates is the best way to bring down
inflation." This is an example of a
positive statement.
⊚ true
⊚ false
8) "Wages in the economy are too low."
This is an example of a normative
statement.
⊚ true
⊚ false
9) Macroeconomics explains the behavior
of individual households and business
firms; microeconomics is concerned
with the behavior of aggregates or the
economy as a whole.
⊚ true
⊚ false
10) Purposeful behavior implies that
everyone will make identical choices.
⊚ true
⊚ false
11) Purposeful behavior implies that
everyone using marginal analysis will
always make correct choices.
⊚ true
⊚ false
,ACCESS Test Bank for Microeconomics 23rd Edition McConnell
mynursytest.store
Microeconomics Edition 23 by McConnell
Version 1
2
12) Marginal analysis means that decision
makers compare the extra benefits with
the extra costs of a specific choice.
⊚ true
⊚ false
13) Rational individuals may make different
choices because their preferences and
circumstances differ.
⊚ true
⊚ false
14) Choices entail marginal costs because
resources are scarce.
⊚ true
⊚ false
15) The production possibilities curve shows
various combinations of two products
that an economy can produce when
achieving full employment.
⊚ true
⊚ false
16) The production possibilities curve shows
what combination of two products that
an economy should produce.
⊚ true
, ⊚ false
17) The entrepreneur's sole function is to
combine other resources (land, labor,
and capital) in the production of some
good or service.
⊚ true
⊚ false
18) The artistic creations of professional
singers, writers, and digital artists are
capital.
⊚ true
⊚ false
19) Products and services are scarce because
resources are scarce.
⊚ true
⊚ false
20) Products and services are scarce solely
because resources are finite in amount.
⊚ true
⊚ false
21) An economy cannot produce at a point
outside of its production possibilities
curve because human economic wants
are insatiable.
⊚ true
⊚ false
22) The process by which capital goods are
accumulated is known as investment.
⊚ true
⊚ false
23) A professional musician writing a new
song is engaging in investment.
⊚ true
⊚ false
24) The present choice of position on the
